The MVRV ratio was created by Murad Mahmudov & David Puell hot on the heals of the invention of Realised Cap by the Coinmetrics team of Nic Carter and Antoine Le Calvez. Realised Cap is an alternative approach to Market Cap as a measure of network valuation. Rather than using the last traded price and multiplying by the coins in circulation as seen in Market Cap, Realised Cap approximates the value paid for all coins in existence by summing the market value of coins at the time they last moved on the blockchain. MVRV is simply the ratio comparing the two, i.e. MVRV = Market Cap / Realised Cap. It’s useful for getting a sense of when the exchange traded price is below “fair value” and is also quite useful for spotting market tops and bottoms.
"Awe and Wonder" later revised MVRV with a z-score, the resulting MVRV-z provides a clearer picture of the market cycle with tops and bottoms normalising around common levels
I`ve also added MV to VWAP Ratio as it belongs in this family of ratios. This is becuase on-chain VWAP Price is very similar to Realised Price.
MVRV Ratio is calculated by dividing the Network Value (market cap) by the Realised Cap.
Data for Realised Cap via Coinmetrics.com.